Legislature(2003 - 2004)

02/20/2004 03:20 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                       February 20, 2004                                                                                        
                           3:20 p.m.                                                                                            
                                                                                                                              
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Tom Anderson, Chair                                                                                              
Representative Carl Gatto, Vice Chair                                                                                           
Representative Nancy Dahlstrom                                                                                                  
Representative Bob Lynn                                                                                                         
Representative Norman Rokeberg                                                                                                  
Representative Harry Crawford                                                                                                   
Representative David Guttenberg                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARING(S)                                                                                                         
                                                                                                                                
Alcoholic Beverage Control Board                                                                                              
                                                                                                                                
     Billy (William) G. Andrews - Anchorage                                                                                     
     Gail M. Niemi - Juneau                                                                                                     
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
Board of Chiropractic Examiners                                                                                               
                                                                                                                                
     R. Clark Davis, D.C. - Ketchikan                                                                                           
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
Board of Dental Examiners                                                                                                     
                                                                                                                                
     Mary Ann Cerney - Fairbanks                                                                                                
     Arne R. Pihl, D.M.D. - Ketchikan                                                                                           
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
Alaska Labor Relations Agency                                                                                                 
                                                                                                                                
Randall C. Frank - Fairbanks                                                                                                    
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
Board of Marine Pilots                                                                                                        
                                                                                                                                
     Anthony (Tony) J. Joslyn - Anchor Point                                                                                    
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
     Robert (Tiny) Schasteen - Unalaska/Dutch Harbor                                                                            
                                                                                                                                
     - CONFIRMATION HELD TO 3/03/04                                                                                             
                                                                                                                                
State Medical Board                                                                                                           
                                                                                                                                
     Robert A. Breffeilh, M.D. - Juneau                                                                                         
     John T. Duddy, M.D. - Anchorage                                                                                            
     G. Bert Flaming, M.D. - Glennallen                                                                                         
     David M. Head, M.D. - Nome                                                                                                 
     Michael J. Tauriainen - Soldotna                                                                                           
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
Board of Certified Direct-Entry Midwives                                                                                      
                                                                                                                                
     Mark E. Richey, M.D., P.C. - Anchorage                                                                                     
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
Board of Nursing                                                                                                              
                                                                                                                                
     Patricia M. Swenson - Anchorage                                                                                            
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
Personnel Board                                                                                                               
                                                                                                                                
     Debra E. English - Anchorage                                                                                               
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
Board of Pharmacy                                                                                                             
                                                                                                                                
     Cindy Bueler - Anchorage                                                                                                   
     Gary M. Givens - Anchorage                                                                                                 
     Michael Pauley - Eagle River                                                                                               
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
Board of Certified Real Estate Appraisers                                                                                     
                                                                                                                                
     Nelida Irvine - Anchorage                                                                                                  
     Gene H Shafer - Fairbanks                                                                                                  
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
Real Estate Commission                                                                                                        
                                                                                                                                
     Lawrence (Larry) J. Bauer - Juneau                                                                                         
     Glenn Clary - Anchorage                                                                                                    
     Rita C. Stuckart - Anchorage                                                                                               
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
Board of Veterinary Examiners                                                                                                 
                                                                                                                                
     David J. Hunt, D.V.M. - Sitka                                                                                              
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
HOUSE BILL NO. 275                                                                                                              
"An Act relating to veterinarians and animals."                                                                                 
                                                                                                                                
     - BILL HEARING POSTPONED                                                                                                   
                                                                                                                                
HOUSE BILL NO. 323                                                                                                              
"An Act relating to the care of and cruelty to animals, and to                                                                  
reports of suspected child abuse or neglect by persons who have                                                                 
a duty to investigate animal cruelty, abuse, or neglect."                                                                       
                                                                                                                                
     - BILL HEARING POSTPONED                                                                                                   
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
PATRICIA M. SWENSON, Appointee                                                                                                  
to the Board of Nursing                                                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified as appointee to the Board of                                                                     
Nursing.                                                                                                                        
                                                                                                                                
ROBERT (TINY) SCHASTEEN, Appointee                                                                                              
to the Board of Marine Pilots                                                                                                   
Unalaska/Dutch Harbor, Alaska                                                                                                   
POSITION  STATEMENT:   Testified  as appointee  to  the Board  of                                                               
Marine Pilots.                                                                                                                  
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 04-15, SIDE A                                                                                                            
Number 0001                                                                                                                     
                                                                                                                                
CHAIR TOM ANDERSON  called the House Labor  and Commerce Standing                                                             
Committee  meeting  to  order  at   3:20  p.m.    Representatives                                                               
Anderson,  Dahlstrom, Lynn,  Rokeberg,  Crawford, and  Guttenberg                                                               
were present at the call  to order.  Representative Gatto arrived                                                               
as the meeting was in progress.                                                                                                 
                                                                                                                                
^CONFIRMATION HEARING(S)                                                                                                      
                                                                                                                                
Number 0096                                                                                                                     
                                                                                                                                
CHAIR ANDERSON  announced that the  only order of  business would                                                               
be confirmation  hearings for 25  of the  governor's appointments                                                               
to various boards as listed in  the committee calendar.  He noted                                                               
that members  had been  provided the names  and resumes  for each                                                               
appointee.   Additionally,  Chair Anderson  noted that  advancing                                                               
the name  out of committee  of any  of the confirmations  did not                                                               
reflect intent to  vote for or against any of  the individuals in                                                               
further sessions for the purpose of confirmation.                                                                               
                                                                                                                                
CHAIR ANDERSON  read the names of  the boards and noted  that two                                                               
appointees, Patricia  M. Swenson  and Robert Schasteen,  had been                                                               
asked to be available for committee questions.                                                                                  
                                                                                                                                
Number 0155                                                                                                                     
                                                                                                                                
PATRICIA  M.   SWENSON,  Appointee  to  the   Board  of  Nursing,                                                               
introduced herself to the committee.                                                                                            
                                                                                                                                
REPRESENTATIVE  ROKEBERG  opined  that   she'd  be  an  excellent                                                               
appointee.                                                                                                                      
                                                                                                                                
MS. SWENSON testified:                                                                                                          
                                                                                                                                
     For 13  years I was  legislative staff.  Before  that I                                                                    
     was a nurse.   I have not been licensed  as a nurse for                                                                    
     the  past 10  years.    I am  applying  for the  public                                                                    
     member  seat on  the board,  which does  not require  a                                                                    
     license.   Nor does it require  any medical background.                                                                    
     I  am  currently  employed   by  the  Alaska  Workforce                                                                    
     Investment  Board,  Alaska   Department  of  Labor  and                                                                    
     Workforce  Development.    Before I  applied  for  this                                                                    
     position, I talked to the  state ethics attorney to ask                                                                    
     if this would, in any way,  be in conflict.  I was told                                                                    
     that my job, and the scope of it, would not be.                                                                            
                                                                                                                                
REPRESENTATIVE  ROKEBERG opined  that  Ms.  Swenson was  uniquely                                                               
experienced because of her nursing background.                                                                                  
                                                                                                                                
Number 0366                                                                                                                     
                                                                                                                                
REPRESENTATIVE   GUTTENBERG  asked   if   the  Alaska   Workforce                                                               
Investment Board does any training of nurses.                                                                                   
                                                                                                                                
MS.  SWENSON  replied  that  it  works  with  the  university  in                                                               
training  nurses.   However, her  position has  no connection  to                                                               
grant monies, and she doesn't review  or approve grants.  She has                                                               
worked  with  Providence   Hospital,  Native  organizations,  the                                                               
University of Alaska Anchorage, and others.                                                                                     
                                                                                                                                
Number 0496                                                                                                                     
                                                                                                                                
ROBERT  (TINY)  SCHASTEEN,  Appointee  to  the  Board  of  Marine                                                               
Pilots, introduced himself.                                                                                                     
                                                                                                                                
REPRESENTATIVE  DAHLSTROM  said  she'd reviewed  Mr.  Schasteen's                                                               
resume, noting  that he  was with  Offshore Systems,  Inc. (OSI).                                                               
She  asked him  to clarify  the  types of  services this  company                                                               
provides.                                                                                                                       
                                                                                                                                
MR. SCHASTEEN  replied that his company's  biggest customers were                                                               
various  fishing  vessels.    He added,  "We  provide  them  with                                                               
berthing,  cold storage,  warehouse  space.   Anything that  they                                                               
need, we  try to perform for  them.  It's like  a one-stop shop."                                                               
In  further  response, he  said,  "Aleutian  Fuel Services  is  a                                                               
separate  company, but  primarily the  same owners.   We  provide                                                               
Aleutian Fuel Services,  which I also supervise,  to provide fuel                                                               
and lube and  filter supplies to the vessels.   We don't have any                                                               
other subsidiary companies."                                                                                                    
                                                                                                                                
Number 0636                                                                                                                     
                                                                                                                                
REPRESENTATIVE  DAHLSTROM  asked  Mr.  Schasteen if  he  had  any                                                               
ownership interests in OSI or Aleutian Fuel Services.                                                                           
                                                                                                                                
MR. SCHASTEEN said no.                                                                                                          
                                                                                                                                
REPRESENTATIVE DAHLSTROM  asked if he'd applied  for the position                                                               
on  the Board  of Marine  Pilots  independently or  was asked  to                                                               
apply for the position by someone else.                                                                                         
                                                                                                                                
MR. SCHASTEEN  answered that he  was called and notified  by Paul                                                               
Axelson (ph)  that the position  was open, and decided  to apply.                                                               
He said he'd applied to be on this board one other time.                                                                        
                                                                                                                                
REPRESENTATIVE DAHLSTROM referred  to some photos she  had of the                                                               
OSI  dock showing  some large  ships, trawlers,  and cargo  ships                                                               
tied up  there.  She  asked if Mr.  Schasteen was aware  that the                                                               
Board  of Marine  Pilots  sometimes has  to  make decisions  that                                                               
would have a financial impact on ship owners.                                                                                   
                                                                                                                                
MR. SCHASTEEN replied yes.                                                                                                      
                                                                                                                                
Number 0725                                                                                                                     
                                                                                                                                
REPRESENTATIVE DAHLSTROM  continued, "So,  your customers  at OSI                                                               
are large ships  and, potentially, you could be asked  to vote on                                                               
questions that would  have a financial impact  on your customers.                                                               
How do you feel about that?"                                                                                                    
                                                                                                                                
MR.  SCHASTEEN  replied  that  his  customers  were  the  fishing                                                               
vessels.  He said:                                                                                                              
                                                                                                                                
     The  large ships  that  you see  there,  they're at  my                                                                    
     berth at  the request of  either the fishing  vessel --                                                                    
     which is not normally the  case.  More likely, it's the                                                                    
     person  who  buys the  fish  from  the fishing  vessel.                                                                    
     Normally, the fish is sold  as soon as it hits whatever                                                                    
     transportation  mode  it's  using, whether  it's  vans,                                                                    
     ships,  or barges;  usually, the  product is  sold upon                                                                    
     arrival on  that vessel.   So the buyer of  the product                                                                    
     determines how it's shipped.                                                                                               
                                                                                                                                
Number 0799                                                                                                                     
                                                                                                                                
REPRESENTATIVE  DAHLSTROM  asked  if  he  saw  any  conflict  [of                                                               
interest] or felt comfortable being put in that position.                                                                       
                                                                                                                                
MR. SCHASTEEN replied, "Absolutely, no problem at all."                                                                         
                                                                                                                                
CHAIR ANDERSON said the Board of  Marine Pilots has two seats for                                                               
pilots,  two  for  shipping  industry  representatives,  and  two                                                               
public  members  that  aren't supposed  to  have  connections  to                                                               
either  piloting or  shipping.   He said  the final  seat on  the                                                               
board   is  for   the  commissioner   of   commerce  or   his/her                                                               
representative.  He said:                                                                                                       
                                                                                                                                
     As  the public  policymakers,  as  the legislature,  we                                                                    
     expect the pilots to serve  from a pilot's perspective,                                                                    
     and we  expect the agents  to serve from  the shipper's                                                                    
     perspective.  Obviously, you see  where I'm going.  But                                                                    
     the public  members, we expect  them to be  looking out                                                                    
     for the  public, kind of a  more neutral, nonaffiliated                                                                    
     role. ...                                                                                                                  
                                                                                                                                
     With your  paycheck, your income tied  to ships docking                                                                    
     at  OSI, I  want  you  to convince  me  that you  would                                                                    
     ignore  what   is  essentially   your  boss,   the  big                                                                    
     shippers, and look out for  the public.  That's why you                                                                    
     were called today.  There  was just a concern - nothing                                                                    
     personal, but we  have to analyze all the  aspects of a                                                                    
     person's  qualifications  and   make  sure  there's  no                                                                    
     conflict of interest.   There seems to  be some concern                                                                    
     from the industry that there  could be, with yours.  So                                                                    
     that's why we wanted you to talk to us today.                                                                              
                                                                                                                                
Number 0903                                                                                                                     
                                                                                                                                
MR. SCHASTEEN referred members to AS 08.01.025, which states:                                                                   
                                                                                                                                
     Sec. 08.01.025. Public  members.  A public  member of a                                                                  
     board may not                                                                                                              
          (1) be engaged in the occupation that the board                                                                       
     regulates;                                                                                                                 
          (2) be associated by legal contract with a member                                                                     
     of the occupation that the  board regulates except as a                                                                    
     consumer of the services  provided by a practitioner of                                                                    
     the occupation; or                                                                                                         
          (3) have a direct financial interest in the                                                                           
     occupation that the board regulates.                                                                                       
                                                                                                                                
MR. SCHASTEEN said he was not  engaged in the occupation that the                                                               
board  regulates,  wasn't  associated with  any  members  through                                                               
legal  contracts, and  had no  direct financial  interest in  the                                                               
occupation   that  the   board   regulates.     He  referred   to                                                               
AS 08.62.010, which states in part:                                                                                             
                                                                                                                                
     Sec.  08.62.010.  Creation  and  membership  of  board.                                                                  
     There  is  created the  Board  of  Marine Pilots.    It                                                                    
     consists of two pilots  licensed under this chapter who                                                                    
     have  been  actively  engaged in  piloting  on  vessels                                                                    
     subject  to  this  chapter, two  registered  agents  or                                                                    
     managers  of vessels  subject to  this chapter  who are                                                                    
     actively  engaged   in  the  procurement   of  pilotage                                                                    
     services,  two public  members  in  accordance with  AS                                                                    
     08.01.025, and  the commissioner or  the commissioner's                                                                    
     designee.                                                                                                                  
                                                                                                                                
MR.  SCHASTEEN said  he is  not  a pilot  and has  never hired  a                                                               
pilot.  He elaborated:                                                                                                          
                                                                                                                                
     To put  it in layman's terms,  I don't have a  say what                                                                    
     cargo goes  where.  I'm  not involved in  that process,                                                                    
     even if I  wish to be.  There's no  way they can assert                                                                    
     power  over me.   My  concern is  the fishing  vessels.                                                                    
     I'll do whatever it takes  to take care of my customers                                                                    
     as  far as  operating offshore  systems, but  the ships                                                                    
     really  have  no  effect  on  that.   If  we  passed  a                                                                    
     regulation that  prevented a ship from  coming in, they                                                                    
     would just find some other way  to ship.  I wouldn't do                                                                    
     that; my customers would.   It just wouldn't affect me.                                                                    
     And,   of   course,   having   berthing   and   docking                                                                    
     facilities, my concern for offshore  systems is in line                                                                    
     with the pilots:  safety is the number-one issue.                                                                          
                                                                                                                                
Number 1111                                                                                                                     
                                                                                                                                
CHAIR  ANDERSON noted  that OSI  operates a  fuel dock  and is  a                                                               
service provider for the fishing  fleet in Dutch Harbor, and that                                                               
pilots do dock.                                                                                                                 
                                                                                                                                
MR. SCHASTEEN said designated cargo  goes from the fishing vessel                                                               
to the freighter, generally by way of a foreign buyer.                                                                          
                                                                                                                                
CHAIR  ANDERSON commented  that  this  confirmation wasn't  easy,                                                               
since there was  a concern from the marine pilots  and others who                                                               
wanted the seat  filled by someone with a neutral  viewpoint.  He                                                               
said:                                                                                                                           
                                                                                                                                
     When I  asked you  a question  about "can  you ignore,"                                                                    
     ...  you  make  money   from  the  industry,  and  this                                                                    
     position is supposed to  be the public-member position.                                                                    
     Can  you ignore  that?   That's my  concern.   It's not                                                                    
     directed at  you personally, but  it's directed  at the                                                                    
     circumstance upon which, and  the cases from which, you                                                                    
     have to rule and decide.   Sometimes it's impossible to                                                                    
     be neutral due to past  experience and pressures, to be                                                                    
     in  circumstances, including  employment, and,  like we                                                                    
     said, monetary or fiduciary roles.  That's my concern.                                                                     
                                                                                                                                
     I  don't want  to speak  for Representative  Dahlstrom,                                                                    
     but  it sounds  like that  could be  hers as  well, and                                                                    
     that's  why the  original  board was  made  up and  has                                                                    
     remained consistent  with two  pilots and  two shipping                                                                    
     industry  representatives  and   then  the  two  public                                                                    
     members,   with   the   seventh  being   the   commerce                                                                    
     commissioner  or  the   representative.    That  really                                                                    
     distinguishes a difference.                                                                                                
                                                                                                                                
Number 1196                                                                                                                     
                                                                                                                                
MR. SCHASTEEN told members he  is looking forward to bringing his                                                               
experience to help make good judgments for the people of Alaska.                                                                
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  asked  what seat  Mr.  Schasteen  had                                                               
applied for previously, and if he knew why he didn't get it.                                                                    
                                                                                                                                
MR. SCHASTEEN  replied that it had  to be the public  seat, since                                                               
he doesn't  qualify for any other  seat.  He said  he didn't know                                                               
why he didn't get that seat on the board.                                                                                       
                                                                                                                                
Number 1248                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG said it seemed  to him that, according to                                                               
the definition in the law, a  public member may not be associated                                                               
by legal contract with a member  of the occupation that the board                                                               
regulates, except as a consumer.   He said the concerns raised by                                                               
the Alaska  State Pilots' Alliance  seem to imply that  there's a                                                               
potential  conflict  of  interest  because Mr.  Schasteen  has  a                                                               
docking facility.   He said, "I  don't know if docks  need marine                                                               
pilots  to  run  them.    Is  there  any  truth  to  that  rumor,                                                               
Mr. Schasteen?"                                                                                                                 
                                                                                                                                
MR. SCHASTEEN  replied that he'd  never hired or  contracted with                                                               
the  marine pilots;  they contract  with some  of the  ships that                                                               
come into his dock.                                                                                                             
                                                                                                                                
CHAIR ANDERSON said he thinks  AS 08.01.025(3) states that having                                                               
a direct financial interest can cause a problem.                                                                                
                                                                                                                                
REPRESENTATIVE ROKEBERG said:                                                                                                   
                                                                                                                                
     If you  go to your dentist  and have him drill  on your                                                                    
     teeth,  you can  be a  consumer of  this practitioner's                                                                    
     profession.  It  seems to me, if  there's a contractual                                                                    
     obligation it  arises between a  public member  and the                                                                    
     occupation regulated,  then you have the  appearance of                                                                    
     a potential conflict  of interest.  I  think that's the                                                                    
     intention.    There  is  an  exception,  right  in  the                                                                    
     statute.   I'm just  wondering how the  statute applies                                                                    
     since that seems to be the point of contention here.                                                                       
                                                                                                                                
Number 1463                                                                                                                     
                                                                                                                                
CHAIR ANDERSON announced that Mr.  Schasteen's name would be held                                                               
until the  committee received additional  legal information.   He                                                               
began to  read the  names on the  appointees, again  stating that                                                               
this  doesn't reflect  an intent  by any  member to  vote for  or                                                               
against these individuals during the joint floor session.                                                                       
                                                                                                                                
Number 1508                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG  objected  for purposes  of  discussion,                                                               
asking  if Chair  Anderson intended  to read  the names  into the                                                               
record on an individual basis.                                                                                                  
                                                                                                                                
CHAIR ANDERSON replied that he did.                                                                                             
                                                                                                                                
The committee took an at-ease from 3:42 p.m. to 3:43 p.m.                                                                       
                                                                                                                                
REPRESENTATIVE ROKEBERG removed his objection.                                                                                  
                                                                                                                                
CHAIR ANDERSON read  the names from the list  of appointees [also                                                               
provided in the  committee calendar for these minutes].   He said                                                               
Mr.  Schasteen's  name would  be  held  [until 3/03/04]  awaiting                                                               
further  information.    He  requested   that  members  sign  the                                                               
committee  report.     [No  formal  motion  was   made,  but  the                                                               
confirmations  of all  the appointees  except Mr.  Schasteen were                                                               
advanced.]                                                                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Labor and  Commerce Standing Committee  meeting was  adjourned at                                                               
3:50 p.m.                                                                                                                       

Document Name Date/Time Subjects